Tom Watson defends decision to accept £540,000 from Max Mosley

Tom Watson has defended his decision to keep £540,000 donated by Max Mosley amid calls for him to return 'racially tainted' money.

The Labour deputy leader was called on to return the money or give it to charity after the Daily Mail revealed Formula One boss published a campaign leaflet linking non-white immigrants with diseases such as tuberculosis, VD and leprosy.

Tom Watson defended his decision to accept £540,000-worth of donations from Max Mosley after the F1 tycoon was revealed to be behind a 'racist' election leaflet in 1961. File photo

Labour responded by saying neither Mr Watson nor the party would take any further payments from him.

But Culture Secretary Matt Hancock suggested he believed Mr Watson would be 'thinking very hard' about returning the money after Tory colleague Simon Hoare raised a general question on whether MPs should 'hand back racially tainted money'.

Mr Mosley has said he does not 'recognise' the leaflet and it is 'not something I would have ever wished to be associated with'.

Mosley has said he doesn't remember a leaflet bearing his name from the 1960s

He has campaigned for tighter press regulation and has donated funds to regulator Impress.